DAILY REVIEW 02 Dec 2013
EU: Monthly – the candle is a small spread (327pips) downthrust dragonfly doji closing on low vol>3months. Price is really not at any significant level. Weekly – the candle is a small spread (132pips) bull closing 1/4 off the high on low vol<4weeks. The candle close and volume suggests no buying pressure but price is not at any significant level.  The Daily candle is a small spread (42pips) bear closing off the low on low vol>1day with daily bearish volume divergence. Levels of interest:  Daily Fib 61.8% @ 1.3622 Previous breakout level 1.3660 Daily Fib 78.6% @ 1.3715 confluence with H4 breakout level 1.3735, Daily Fib88.6% @ 1.3770 confluence with H4 supply level 1.3771 – 1.3790 Price opened with a small gap down and the Asian range is 1.3581 – 1.3610 currently. The new TR 1.3559 – 1.3621 is holding at the moment. The food chain for SM is still northbound and SM is likely to retest the highs to induce more shorts, then reverse, possibly to Asia low before reversing back north. A H1/H4 close below 1.3581 may see price testing lower to the 1.3557 level before pushing back up. 
EU long levels:  1.3580, 1.3564, 1.3557 EU short levels:  1.3625, 1.3700, 1.3723, 1.3780 


GU: Monthly- the candle is a normal spread (530pips) bull closing near the high on low vol<1month. The candle close and volume suggest more upside. Weekly- the candle is a near-normal spread (251pips) bull closing off the high on average vol>12weeks. The candle close and volume suggest upside. Levels of interest: Likely target 1.6750 Daily breakout of congestion level 1.6455 The Daily candle is a near-normal spread (70pips) bull small-bodied spinning top closing on average vol>5days with daily bearish volume divergence. The candle close and volume does suggest selling into the candle. 
Price has gapped up and broken last week’s high. The Asian range is 1.6367 – 1.6441 currently. The large range in Asia is likely to have taken out a significant number of weak shorts. The current GU swing is also now about just over 300pips, prices are also close to test the previous daily congestion breakout level of 1.6455 SM has done the business to take profits for November and this should be a good level to start fading the new longs and the weak longs. Today may see a retracement downwards at the test of the 1.6455 level. SM is likely to induce breakout traders at the retest of the high or around the 1.6455 level before reversing for a retracement trade down which may turn out to be a mid-week reversal. 
GU long levels:  1.6352, 1.6320, 1.6300, 1.6276, 1.6240, 1.6209 GU short levels: 1.6380, 1.6418, 1.6452, 1.6527